A Wednesday morning release issued by ELAD said $342 million has been paid by Rester to the previous owner of ELAD, Israeli-based ELAD Group. That firm is controlled by billionaire Yitzhak Tshuva.
ELAD Canada and Rester will retain the day-to-day management and operations of its development sites and income-producing portfolio across Canada and the U.S. The transaction includes ELAD Canada’s Galleria on the Park development in Toronto and the seven-million-square-foot Agellan industrial and office portfolio in the United States.
“We are very pleased to enter a new chapter for our business and look forward to working alongside Rester Management and its partners to continue building on our success,” said ELAD Canada CEO Rafael Lazer in a prepared statement.
“Under this new ownership we will continue to be a leading real estate firm and will be stronger, well-capitalized and better than ever.
“The vote of confidence by Rester and its partners is a testament to the quality and resilience of our development sites and properties across North America, as well as the strength of our expertise in real estate development and asset management.”
Some ELAD assets excluded from transaction
Not all of ELAD’s assets are included in this transactions.
The soon-to-be-completed Emerald City master-planned community in Toronto’s North York district as well as ELAD’s interest in a portfolio of multifamily residential complexes in the U.S. were excluded from the transaction and allotted to ELAD Group.
Also excluded is a 300,000-square-foot retail development to be built as part of the Galleria on the Park master-planned community in Toronto’s West End. It also has been allotted to ELAD Group.
ELAD Canada has reached several significant milestones across its portfolio during the past year, selling out the Emerald City community in North York and launching the 31-storey, mixed-use tower Galleria III at Galleria on the Park in Toronto.
Lansing Square, ELAD’s newest master-planned community in North York, is slated to launch in early 2022. It is a 400,000-square-foot office complex on approximately 15 acres slated to be redeveloped as a mixed-use community.
The firm also reports its properties have maintained “strong leasing momentum and stable collection rates” across its over-seven-million-square-foot, income-producing portfolio.
During the transaction, Rester was represented by KIN Capital Partners. Law firm BLG represented the purchaser, with Stikeman Elliott representing ELAD.
About Rester Management
Rester Management is based in Montreal and has owned, developed and managed office, retail and residential properties primarily in and around Greater Montreal.
Controlled by the Drazin family, it it part of a network which owns and operates several million square feet of commercial space in and around Montreal, as well as residential, commercial and industrial properties across Canada and the Eastern U.S.
The family has deep roots in Canadian real estate, having been involved in investment and property operations for over a century.